ASSOCHAM: 315 hypermarkets likey in tier I and II cities by 2011

ASSOCHAM: 315 hypermarkets likey in tier I and II cities by 2011

Around 315 hypermarkets are expected to come up in tier I and II cities of India by 2011 to sell off all articles from needles to automobiles under one roof, according to a joint study by industry body Assocham and KPMG.
The study entitled `Reinventing India`s Retail Sector` in its analysis of Feasibility of Hypermarkets in tier I and II towns between 2008-11 points out that even in year 2008, 212 towns had sufficient market potential for hypermarkets for break even existence. However, the study pointed out that the potential of those markets are yet to be realized by the industry.
The report further stated that organised retail, which is growing at 20 per cent annually, is encouraging mall building activities at phenomenal rate, which would ultimately amount to creation of chains of hypermarkets.
The study further pointed out that tier III, IV and V towns should be on the radar of retail majors today, since even if they decide to set up stores in these towns three years from now, planning for the same should begin at this stage.